If you've got the $$ to burn and want a super hi end camera, go with the 10D. I shoot with the Digital Rebel and love it. Some day I'd love to shoot with both cameras and see what the real diff is. As far as lighting goes, I bought a 4 lamp set that is awesome and used properly will eliminate almost all shadows.
http://stores.ebay.com/STEVE-KAESER-...NDS-SINCE-1989
take a look there, as Steve Kaeser has a lot of lamp kits. I did go with the halogens, so you have to remeber to set white balance everytime, but it's all good...